Voting Power
TL;DR
Your voting power in a BRC20 community on DotDAO depends on the amount and duration of your locked tokens.
Over time, your voting power will gradually decrease and reach 0 at the end of your lock period.
DotDAO offers a trustless locking function for holders to securely lock their tokens in a P2WSH (Pay-to-Witness-Script-Hash).
The locked BRC20 tokens can only be spent when a specific unlocking script is presented, which in our case means the assets can only be sent back to the original holder with their own signature after the lock duration.
Introduction to Voting Power on DotDAO
DotDAO utilizes a veToken (vote escrow token) model, inspired by Curve, to determine voting power. This model allows BRC20 holders to lock their tokens for a specific duration, gaining corresponding voting power. Here's an overview of the voting power process on DotDAO:
Locking BRC20 Tokens:
The token holder specifies the desired amount of tokens to lock and specifies the lock duration.
DotDAO creates a locking script and an unlocking script using the specified lock duration and the holder's public key:
Locking script: A P2WSH (Pay-to-Witness-Script-Hash) BTC address that includes a timelock. It serves as a secure container for the locked BRC20 tokens. To spend its tokens, two conditions must be met: a. the lock duration must have passed, and b. the transaction must be signed with the original holder's private key.
Unlocking script: Used to return the BRC20 tokens within the locking script back to the original holder.
DotDAO creates a BRC20 TRANSFER inscription and sends it to the locking script, enabling the transferability of its BRC20 balance.
Allocation of Voting Power:
The holder who locked the tokens is then allocated with a voting power (in that specific BRC20 community) based on the locked amount and duration.
The allocated voting power gradually decays over time and reaches 0 at the end of the lock duration.
Unlocking Process:
When the lock duration expires, the following actions can take place:
The holder requests a transaction to return their BRC20 tokens.
DotSwap assists the holder in creating a bitcoin transaction, which will require a signature from the holder.
The transaction is signed and broadcasted, return the BRC20 tokens after serveral block confirmations.
The holder can create such transactions themself, since the unlocking script only needs the holder's signature and is not controlled by DotDAO.
By implementing this voting power model, DotDAO ensures a fair and transparent governance process that aligns with the locked token holdings. The flowchart below illustrates the locking and BRC20 transferring process:
Through this voting power mechanism, DotDAO empowers BRC20 token holders to actively participate in governance decisions, ensuring a democratic and inclusive platform for the community.
Last updated
